Real Estate Maharashtra
Maharashtra's Real Estate Sector to Benefit from MahaRERA's New Bank Account Regulations
By GeoSquare News Desk · Published 2024-07-01
In a move to enhance transparency and buyer protection, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced new rules requiring developers to use specific bank accounts for project funds. Effective July 1st, homebuyers in Maharashtra will have more control and visibility over their investments. Previously, developers collected payments from buyers in different accounts, making it challenging for buyers to track their money. The new regulations aim to centralize all buyer funds into three distinct accounts within a single bank, promoting financial discipline and accountability.
The three accounts are RERA Designated Collection Account, RERA Designated Separate Account, and RERA Designated Transaction Account. The Collection Account will receive 100% of buyer funds, excluding government taxes. A minimum of 70% of these funds will be transferred to the Separate Account, earmarked for land acquisition and construction expenses. The remaining 30% will be allocated to the Transaction Account, allowing developers flexibility for project-related expenses.
These measures are designed to safeguard buyer interests by ensuring funds are utilized efficiently towards project completion. Homebuyers will benefit from increased transparency, with 70% of their money clearly allocated for construction. Faster refunds are also possible, and project completion will stop all transactions in these accounts, ensuring funds are used for their intended purpose. Banks will be required to prevent unauthorized access to the designated accounts, offering an extra layer of security for buyer funds. Developers will also need to disclose details of any loans taken for the project, promoting financial transparency.
MahaRERA Chairman Shri Ajoy Mehta believes these measures will build trust between homebuyers and developers, minimizing potential delays in project completion and enhancing the real estate sector's credibility. With more transparency and protection, homebuyers in Maharashtra can have greater confidence in their real estate investments.